Which of the following is the GREATEST concern for an organization subject to cross-border data transfer regulations when using a cloud service provider to store and process data?

Which of the following is the GREATEST concern for an organization subject to cross-border data transfer regulations when using a cloud service provider to store and process data?
A . The service provider has denied the organization’s request for right to audit.
B . Personal data stored on the cloud has not been anonymized.
C . The extent of the service provider’s access to data has not been established.
D . The data is stored in a region with different data protection requirements.

View Answer

Answer: D

Explanation:

Reference: https://www.isaca.org/resources/isaca-journal/past-issues/2014/data-owners-responsibilities-when-migrating-to-the-cloud

Cross-border data transfer regulations are laws and rules that govern the movement of personal data across national or regional boundaries. They aim to protect the privacy rights and interests of the data subjects, and to ensure that their personal data are not subject to lower or incompatible standards of protection in other jurisdictions. Examples of cross-border data transfer regulations

include the General Data Protection Regulation (GDPR) in the European Union, the California Consumer Privacy Act (CCPA) in the United States, and the Personal Information Protection Law (PIPL) in China.

When an organization uses a cloud service provider to store and process data, it may face the risk of transferring personal data to a region with different data protection requirements, such as a region that has not been recognized as providing adequate or equivalent levels of protection by the original jurisdiction, or a region that has conflicting or incompatible laws or regulations with the original jurisdiction. This may result in the following consequences for the organization:

It may violate the cross-border data transfer regulations of the original jurisdiction, and face legal sanctions, fines, or lawsuits from the regulators, customers, or data subjects.

It may lose control or visibility over the personal data, and expose them to unauthorized or unlawful access, use, modification, or disclosure by the cloud service provider or third parties.

It may compromise the trust and confidence of the customers and data subjects, and damage its reputation and competitiveness.

Therefore, an organization subject to cross-border data transfer regulations should carefully assess

and manage the risks of using a cloud service provider to store and process data, and ensure that it

has appropriate safeguards and mechanisms in place to protect the privacy of personal data across

borders.

Reference: Cross-Border Data Transfer and Data Localization Requirements … – ISACA, section 1: “As a result, China’s National People’s Congress (NPC) and the National Committee of the Chinese People’s Political Consultative Conference (PCC) put forward suggestions on legislation addressing cross-border data transfer.”

Regulatory Approaches to Cross-Border Data Transfers, section 1: “Cross-border transfers of personal information are increasingly common in today’s globalised economy. However, different jurisdictions have different approaches to regulating such transfers.”

Cross-Border Data Transfer Requirements: Global Privacy Laws – Securiti, section 1: “Data transfer conditions, mechanisms, localization and regulatory authority of each law.”

The Regulation of Cross-Border Data Transfers in the Context … – Springer, section 1: “No Party shall prohibit or restrict the cross-border transfer of information, including personal information, by electronic means if this activity is for the conduct of the business of a covered person.”